4.1 Market Segmentation
Contemporary Ti Design has two targeted groups of people, galleries and individuals:
• Galleries- These buyers are purchasing jewelry wholesale in quantity and reselling it to the public. Some of the galleries are private galleries, some are artisan jewely shops, some are museum stores, like the Smithsonian Hirschorn Museum of Modern Art Store. The margins are not as good compared to sales to individuals and there is also the expense of setting up relationships with the galleries to sell the art pieces, but galleries move a large quantity of work. The galleries and stores that typically are interested in Contemporary's work are more upscale and modern. They appeal to a crowd that favors progressive or industrial design.
• Individuals- These buyers are familiar with Contemporary Ti Design either from stumbling across the website, saw some examples of Steve's work at a showing or art festival, word of mouth, or some other avenue. The individual would then view the different available pieces on the website and place the order via the Web, phone, fax, or mail. The margins for individual sales are greater because there is not a distribution layer involved, it is direct from Contemporary Ti Design to the end consumer. The individuals that are typically attracted to this type of art work are generally from cities and are fairly progressive. The reason for this is that the jewely, while not flashy, is not all that conservative looking. They are intricate pieces, typically using organic shapes and industrial design. This is the reason that more progressive people will appreciate the Contemporary Ti Design pieces.